Russia submits three‑year budget plan as deficit swells and defence spending set to hit record level
The cabinet has delivered a draft federal budget for 2027‑2029 that shows a 2026 deficit of 7.345 trillion rubles, the highest on record. The plan projects cumulative deficits of almost 16 trillion rubles over the three‑year span, roughly 2 % of GDP each year. Defence and security allocations are slated to rise to a new record, while the government signals cuts to social‑policy spending and higher debt‑service costs.
To bridge the widening gap the state intends to introduce additional taxes and draw on the National Wealth Fund, Treasury reserves and domestic OFZ bonds, after domestic bond sales were cancelled. Analysts note that the growing fiscal strain could affect Russia’s economic stability.
Why it matters
The expanding deficit and record defence outlay could pressure the Russian economy and affect ordinary citizens through reduced social spending and higher taxes.
How the sides frame it
HIGH AGREEMENTAll camps report a record-size defence budget and accompanying cuts to social spending, but left-leaning coverage emphasizes the war-driven economic strain, centrist coverage stresses the looming financing gap, and right-leaning coverage frames the increase as a dangerous surge financed by higher taxes and cuts.
LEFT
Covers the record military budget as a sign of Russia’s deepening war effort and growing economic strain, while noting the economy is not yet collapsing.
CENTER
Highlights the widening fiscal deficit and the risk that Russia’s war budget may outstrip available financing, stressing the need for new levies and bond sales.
RIGHT
Portrays the defence spend surge as a reckless expansion funded by cuts to welfare, education and health and by higher taxes, warning of the burden on the Russian people.
The left emphasises
- record Russian military budget for 2027
- wartime economy faces long-term erosion from debt and military spending
- no immediate financial collapse despite mounting economic woes
The right emphasises
- defence spending surges 27% to a record level
- cuts to welfare, education and healthcare to fund the war
- higher taxes and borrowing imposed on the Russian people
How this story developed
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- Sep 22 Trump told reporters he wants to stop sending diesel abroad, citing the surge in diesel costs driven by conflicts in Iran and Ukraine. Treasury Secretary Scott Bessent said the administration is reviewing whether a full or partial ban is feasible. Republican Senate hopefuls, including Ashley Hinson, have urged the government to adopt the ban to ease price pressures on Americans.
- Sep 23 Rural GOP lawmakers have publicly demanded action on diesel exports ahead of the November election.
- Sep 23 Interim President Delcy Rodriguez told the UN General Assembly that Venezuela will hold elections as part of a transition to full democracy, without specifying a date.
- Sep 24 President Trump announced support for a diesel export ban.
- Sep 24 The interim leader publicly pledged future elections.
- Sep 26 The European Union has asked the administration to keep U.S. diesel exports flowing amid the price surge.
- Sep 26 At the UN General Assembly, Sergej Lavrov declared that the threat to Russian security will be eliminated and that peaceful life will return, while accusing Europe of blocking peace talks.
- Sep 27 German Foreign Minister Johann Wadephul held a bilateral meeting with Sergej Lavrov at the United Nations, the first such talks at this level since the conflict began.
- Sep 27 Rodriguez announced that Venezuela will hold future elections.
- Sep 28 Polish Deputy Prime Minister Radosław Sikorski publicly urged Lavrov to end the war during a UN Security Council debate.
- Sep 29 The government announced a lift of the defence budget to a record level for the next fiscal year.
- Sep 29 Trump said he will look into limiting diesel exports.
- Oct 2 The draft budget now includes a projected three‑year cumulative deficit of almost 16 trillion rubles.
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